Nordam Group Inc. won court approval Monday of a chapter 11 exit plan that brings in new money from private-equity giant Carlyle Group and pays all creditors in full, WSJPro reported. The company will leave bankruptcy intact, with most of its equity still in the hands of the heirs of Ray Siegfried Sr., the company’s founder. Judge Mary Walrath confirmed Nordam’s chapter 11 plan at a hearing in the U.S. Bankruptcy Court in Wilmington, Del. An aerospace parts-maker and repair service, Nordam faced an uncertain future in July 2018, when it filed for chapter 11 protection, said Ryan Dahl, lawyer for the Tulsa, Okla., company. With its loans coming due, Nordam was caught up in a fight with a major business partner, Pratt & Whitney Canada, and had no advance agreements about how it would exit bankruptcy. Nordam’s dispute with Pratt & Whitney and its “freefall” bankruptcy filing disturbed the chain of production for business passenger jets. Pratt & Whitney and Nordam came to terms on a settlement, averting the possibility of a chapter 11 court fight. Carlyle Group was chosen to help Nordam pay its way out of bankruptcy by buying a minority stake for $140 million. The company has been under the control of the Siegfried family for about 50 years, and operates an international repair and manufacturing business.
